Pi Network price is at a critical juncture amid ongoing token unlocks that will likely impact the performance. These unlocks will go on until May 2025, and they are exerting bearish pressure on the meme coin’s price even as it fails to bounce from the $0.60 support level. In this article, we explore whether the upcoming 212M unlocks will spark a rally or trigger a crash.
Pi Network Price Impact Amid 212M Unlocks
Data from PiScan shows that 212M Pi Network tokens, whose value is approximately $130M at the current price, will be included in the circulating supply in the next 30 days. This means that there will be an average of 7M PI tokens per day until May 17.
These token unlocks will hurt Pi Network price by increasing the token’s supply even when the demand is low. Therefore, the token may record a sharp reversal in trend or even consolidate within the current range lows if there is insufficient demand to absorb this supply.
However, analyst Spock on X notes that under the current PI tokenomics, this token may prevent a crash even as these unlocks continue. This analyst added that over 90% of addresses include accounts that hold less than 100 PI tokens, suggesting high interest from the retail market. He added that if Pi Coin sees demand, it may also prevent a crash.
Despite this bullish forecast, 23 whale addresses hold more than 12M PI tokens, which is more than 90% of the 13.2M tokens that are currently available on the mainnet. This indicates that whale addresses can impact the price of an asset if they decide to sell, further highlighting a bearish Pi Network price prediction.
As such, these token unlocks may trigger a crash in the Pi Network price if demand fails to absorb the sold coins.
Pi Network Technical Analysis
Pi Network price trades at $0.61 today with a slight 2% gain in 24 hours. These gains suggest that bullish momentum is building around this token, which may drive Pi Coin’s volatility over the weekend.
On the two-hour price chart, Pi Network price was flashing signs of a possible trend reversal from an uptrend to a downtrend. The downtrend will be confirmed if Pi Coin falls below support at the neckline of $0.61.
Meanwhile, the RSI is rising, indicating that buyers are stepping back into the market, which could aid the uptrend for Pi Coin price. Traders should watch out for the crossover of the RSI above 50 to confirm a shift in the market structure.
Considering the upcoming unlocks of 212M PI tokens, the Pi Network price may drop due to a surge in supply as demand remains low. Additionally, the two-hour price chart shows that bearish momentum is building around the token that may spark a drop to $0.44.
The post Will Pi Network Price Crash or Rally After 212M Unlocks? appeared first on CoinGape.
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